Are you looking for business grants in Nigeria and funding opportunities for your business?
Although there are loan platforms that give loans online, we’ll share with you organizations to get business grants in Nigeria.
The majority of business owners or those who are planning to start a business across the country are feeling the impact of the economic downturn in Nigeria.
A lot of businesses already set up are in danger of breaking down due to inconsistent cash flow.
This is the exact reason why the government and private entities have set up business grants in Nigeria.
Business grants is one of the vehicles put in motion by the government and private establishments to help entrepreneurs start a business and stay afloat.
If you’re looking for how to borrow money online in Nigeria, we’ve got you covered.
If you are an entrepreneur and are wondering what are your best options concerning small business grants, you are reading the perfect article.
8 Business Grants In Nigeria for Entrepreneurs
We will give you a summary of the top ten business grants and funding organizations in Nigeria and how you can use them to your advantage, in order to keep that business dream alive.
SMEDAN (Which means ‘The Small and Medium Enterprises Development Agency of Nigeria’) was setup by the Nigerian government in 2003.
The goal is to help sustain and improve Small and Medium Enterprises in Nigeria. As much as it is a boost for the small and medium enterprises, it indirectly boosts the Nigerian economy.
The agency has a vision to help sustain Nigeria’s sustainable economic growth through a structured and efficient Micro SMEs.
This means it is one of the business grants in Nigeria setup only for business owners and entrepreneurs.
The agency offers four types of loans namely; Personal loans, Business loans, mortgage loans, and Credit card loans.
An entrepreneur may proceed to apply for any of these categories of loans at varying interest rates depending on the credit amount, credit history and so on.
All you need to do is to visit the SMEDAN Credit information website, select the type of loan you need as stated above.
Then, you’ll provide the required information on the next step including your personal details, bank details, employment status, age, etc.
The information provided will determine the amount of loan you will be granted.
You will be given a range of options to pick from and you can proceed to apply for the option that satisfies your needs promptly.
2. The Tony Elumelu Foundation
The Tony Elumelu Foundation is one of the most popular and best platforms for business grants in Nigeria you can ever apply for.
The foundation was set up by Tony Elumelu who is an entrepreneur himself, which means he knows how it feels to be an entrepreneur who needs a big financial break to help his business succeed.
The foundation’s objective is to help empower entrepreneurs in Africa by providing funds for businesses which will help boost growth of the economy, provide jobs and reduce poverty in the continent.
The foundation is present in all countries in Africa. To apply, you need to have a business plan that works.
It is through the business plan you present that determines if you will be selected to join the program. The selection process begins at the end of the application, usually March 31st.
The criteria required for you to be selected include Feasibility of your business, Financial Understanding aspects of how to run a business, scalability, etc.
Entrepreneurs whose applications are successful will receive a notification in the email provided during the application process.
You will then be required to provide further details such as:
- complete a self-declaration form,
- Valid ID
- Statement of account for the past 6 months
- Statement of current personal debts
- Reference from an employer, bank and/or academic institutions
- Bank account details (For UBA present countries, it must be a UBA account)
3. Penny Lender
This is another great option of business grants in Nigeria.
PennyLender is a leading online loan company that supply loans for personal, business and credit cards.
It can be single, installment loan payments for borrowers only through borrowers. This means that anyone who intends to obtain loans from this platform has to be employed.
This is because the loan amount and interest rate is determined by the information provided by your employer.
The loan will then be deducted from your account on a monthly installment basis in the range of 3-6 months, and could be up to 50% of your salary.
The loan amount provided by this agency to new customers is within the range of N10,000-N500, 000.
The requirements to get this loan includes:
- Valid ID (Int’ passport, Driver’s license, Permanent Voters Card, National ID card)
- Utility Bill such as Electricity bill
- Passport photograph
- 3 months bank statement
- Reference letter from employer
4. Alat By Wema Bank
ALAT is a digital banking app and is a product of WEMA Bank Group, one of the oldest banks in Nigeria.
Through this app, you can easily obtain quick loans up to N200,000 for your personal or business use.
It is also one of the top business grants in Nigeria where you can obtain loans within minutes of the application without collateral as long as you satisfy their requirements such as:
- Opening a standard savings, upgraded ALAT account.
- Mobile Phone (iOS / Android devices) or Laptop.
- Valid bank verification number (BVN)
- A passport sized picture
- Functional email address and valid phone number
- Valid ID ( international passport, driver’s license, national ID card or voter’s card)
5. Kiakia Loan By Sterling Bank
The full name of this loan is the Sterling bank Kiakia loan as it is a subsidiary of the Sterling bank Group. This agency is well trusted and provides one of the best companies for grants in Nigeria.
KiaKia is an online moneylender that provides direct personal loans at flexible rates, by matching borrowers with individual or corporate lenders at mutually-agreed rates.
They offer loans from N10,000 and N200,000 for a minimum duration of 7 days and a maximum of 30 days.
This loan is however available only through their official website at www.kiakia.co with requirements such as A valid ID card, An email address, A bank account (Preferably a sterling bank account), etc.
More so, their interest rates are also okay, ranging from 5.6% – 24% depending on loan risk and credit history.
6. Bank of Industry Loans & Grants
The Bank of Industry was set up by the Federal Government of Nigeria to help provide loans for businesses through industrial equipment used in many manufacturing industries.
Though the bank does not provide loans in the form of cash, they supply the loans to vendors who are to supply the equipment and machinery which the loan application is for.
This type of loan are targeted at industries such as Solid minerals, information technology, oil and gas, and creative industries.
The minimum loans supplied by the Bank of the industry are N5 million and accept collateral aside landed properties.
Learn more about the Bank of Industry Loan for Agriculture, for example, to see the processes involved.
The Bank of Industry not only provide funds but also training and mentorship to ensure your business is a success.
This reason makes it one of the best business grants in Nigeria.
You can also check out our post on list of government grants for individuals, for citizens of the United States.
7. Other Loan Organizations
There is currently a hand full of loan organizations in Nigeria where individuals can have access to loans for their business without any collateral.
One of these loan platforms is C24 Loans. C24 loan company charges an interest rate of 4% monthly which is quite low compared to the other loan platforms on this list.
The only other charge you pay aside this is the Management fee of 4% of loan amount. This is a one time payment.
Other platforms are Carbon Paylater, Branch International, Palm Creadit, RenMoney, and more..
Youth Innovative Entrepreneurship Development Program (YIEDP) is a program set up by the Central Bank of Nigeria on the 15th March 2016.
The program was created to improve the entrepreneurial spirit among the youths of Nigeria through training, of whom many are unemployed.
They are then given opportunity through grants to help them set up their own business.
This is definitely a top platform for grants in Nigeria for the youths especially. The program offers youths credit up to N3 million for individuals and N10 million for a group with a loan tenor of up to 3 years.
The collateral requirements are simply academic and NYSC certificates.
Did you know that you can dial certain USSD codes to get loans in Nigeria, right on your smartphone and get the funds in minutes? Check that out.
Summary Notes On Business Grants In Nigeria
It is obvious that there are a lot of organizations for grants in Nigeria you can benefit from.
The best part is that most of them do not require collateral but you can be required to go through training of some sort.
If you are successful in your application for these grants, it will no doubt be a boost for your business and its potential to succeed.
Did you find this post to be helpful? Tell us what you think in the comment box below.
Even More Topics: